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Other Loans
Shashwaat Consultants is a leading financial institution specializing in providing comprehensive financial solutions to businesses of all sizes. We understand the unique financial requirements of project financing and offer a range of flexible and tailored solutions to help you achieve your project goals.
1. MSME Banking Loan:
MSME loans are financial assistance provided to Micro, Small, and Medium Enterprises (MSMEs) to help them establish, grow, or expand their businesses. These loans are offered by various financial institutions like banks, non-banking financial companies (NBFCs), and government agencies. MSMEs play a crucial role in India’s economy, and these loans are designed to support their growth and development.
A. Basic Eligibility
Business Type
Eligible business structures: Pvt Ltd, Ltd, sole proprietorship, partnership, and LLP.
Credit Score
A good credit score (750+) and no history of loan defaults are required.
Business Experience
Minimum 3 years of experience in the same line of business.
Industry
Eligible industries include manufacturing, trading, and services.
B. Benifits
Quick disbursal of amount:
MSME loans are often processed and disbursed quickly, providing businesses with immediate access to funds.
Affordable interest rates:
Banks and financial institutions offer competitive interest rates on MSME loans, making them more affordable for small businesses.
Flexible repayment tenure:
MSME loans come with flexible repayment options, allowing businesses to choose a tenure that suits their cash flow and business needs.
No collateral required:
Many MSME loans are unsecured, meaning businesses can avail of funds without pledging any assets as collateral.
Government support:
The government offers various schemes and subsidies to MSMEs, making it easier for them to secure loans and grow their businesses.
Tax benefits:
MSMEs are eligible for various tax benefits, which can help them save on their overall costs.
C. Types Of MSME Loan
Term loans are used for long-term investments like purchasing machinery, equipment, or property and are repaid in fixed installments over a specific period.
Working capital loans help manage day-to-day operations by covering expenses like inventory, salaries, and rent, and can be in the form of overdrafts, cash credit, or lines of credit.
Specifically for purchasing or upgrading machinery and equipment.
D. Key Factors of a MSME Loan
The margin money percentage for MSME banking loans typically ranges from 10% to 25% of the loan amount, depending on the type of loan and the borrower's profile.
The interest rate for MSME banking loans varies between 8.5% to 12% per annum, depending on the lender, loan type, and borrower's creditworthiness.
Collateral for MSME loans can vary, but often includes property, inventory, machinery, equipment, accounts receivable, or personal guarantees. However, many banks offer collateral-free loans, especially for smaller amounts.
The repayment period for MSME banking loans typically ranges from 12 months to 15 years, depending on the type of loan and the borrower's profile.
2. Term Loan
A term loan is a type of loan where a lender provides a borrower with a fixed sum of money upfront. In return, the borrower agrees to repay the loan with interest over a specific period, typically through regular installments. Term loans are commonly used by businesses to finance long-term investments like purchasing equipment, expanding operations, or acquiring real estate. They offer a predictable repayment structure with either fixed or variable interest rates, making them a reliable source of funding for businesses with sound financial standing.
A. Basic Eligibility
Age
Minimum 18 years, maximum age varies by lender (usually 60-65 years)
Citizenship
Indian Citizen
Income
Regular source of income (salary, business income, etc.)
Credit Score
Good credit history (CIBIL score of 750+ preferred)
Collateral
May be required depending on the loan amount and lender's policy
B. Benefits
Lower interest rates:
Typically lower than other loans due to longer tenure.
Fixed interest rates:
Predictable payments, easier budgeting.
Long-term financing:
Funds large investments without immediate strain.
Flexibility:
Can be used for various purposes (equipment, expansion, etc.).
Improved credit score:
Timely repayments positively impact creditworthiness.
Quick disbursal:
Access funds rapidly to meet needs.
C. Types Of Term Loan
Short-term loans (up to 18 months) are used for working capital and seasonal needs, such as business loans for inventory and payroll.
Intermediate-term loans (2-5 years) are used for expansion and equipment purchases, such as loans for machinery and vehicle purchases.
Long-term loans (3-30 years) are used for major investments and real estate, such as home loans and commercial property loans.
D. Key Factors of a Term Loan
The margin money percentage for all types of Term loans typically ranges from 10% to 25% of the loan amount.
Long-term interest rates are usually higher than short-term interest rates.
Collateral in a term loan is an asset (like property, vehicles, or investments) pledged by the borrower to the lender as security for the loan. If the borrower defaults on the loan, the lender can seize and sell the collateral to recover the outstanding debt. Collateral often helps secure lower interest rates for borrowers.
The repayment period of a term loan, often referred to as the tenure, typically ranges from 1 to 10 years, but can extend up to 30 years depending on the loan type and lender's policies. This period d
3. Cash Credit Loan
Cash credit is a short-term loan facility provided by banks to businesses to meet their working capital requirements. It allows businesses to withdraw funds up to a pre-approved limit as needed, and interest is charged only on the utilized amount. Cash credit facilities are typically secured by collateral, such as inventory or receivables, and are suitable for businesses with consistent cash flow need
A. Basic Eligibility
Age
Typically between 18 to 80 years (at the time of loan maturity)
Business Vintage
Minimum 2-3 years of operation.
Credit Score
Good credit history and CIBIL score (685+)
Business Type
Sole proprietorship, partnership, private limited company, Limited Liability Companies etc.
B. Benefits
Flexibility:
Withdraw funds as needed up to a pre-approved limit.
Cost-effective:
Pay interest only on the amount used, not the entire limit.
Improved cash flow:
Manage cash flow better by having funds available when needed.
Quick access:
Fast processing and approval for urgent needs.
Revolving credit:
Withdraw and repay multiple times within the credit period.
Lower interest costs:
Pay interest only on the utilized amount.
D. Key Factors of a Term Loan
The margin rate for cash credit loans ranges from 10% to 25% of the sanctioned limit.
Cash credit loans are usually required to be repaid within a year or less, and the interest is payable only on the amount used/withdrawn and not the entire borrowing limit.
Primary security of stock and book debts required along with property collateral.
Cash credit loans typically have a repayment period of up to 12 months, which can be renewed annually.